3 - impact of non-monetary rewards on employees motivation a study of commercial banks in karachi

8/10/2019 3 - Impact of Non-monetary Rewards on Employees Motivation a Study of Commercial Banks in Karachi

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Impact of Non-monetary Rewards on Employees Motivation: aStudy of Commercial Banks in Karachi

Vol. 9, No. 2, (Fall 2013) 26

rewards and recognition strategies says Robert (2005). The study found a positiverelationship between rewards, recognition and motivation and concluded that goodreward and recognition system contributes to employee motivation and satisfaction.More highly the employees would be rewarded and recognized, the more they will bemotivated and motivated employees are less likely to quit the job, the studyconcluded.

Wiscombe (2002) conducted a research with managers and revealed thatrecognizing employees assists them to become more productive. According to thisstudy, 69.3% of the respondent managers indicated that providing non-monetaryrecognition helps more the manager to achieve their organizational goals. A survey bythe Professional Secretaries International revealed that 30% of professional secretariesprefer a simple letter of appreciation from their managers. However, only 7% had gotsuch letters in their career. The finding bespeaks indifference of the organizationstowards such effective and efficient source of employee motivation on the job.

3.RESEARCH METHOD

In order to test the hypotheses, quantitative study was conducted and descriptiveanalysis technique was used. Two independent variables, non-monetary rewards and

recognition were taken to ascertain their impact over motivation level of the employeesdependent variable. Survey method was employed to collect data from different banksof Karachi. Name of banks are not mentioned here because of confidential issues. Totalpopulation of this study was unknown; hence a convenience based sample of 384 wasselected for this study. All respondents belonged to different managerial levels such asbranch managers, operation managers, credit officers, finance and trade officers.

A standardized and well-structured questionnaire was used to gauge theresponses on a five level Likert scale ranging from strongly agree to strongly disagreeoptions. Questionnaire contents were adopted from Paul E. Spector (1988) andEmployee recognition program handbook developed by department of human

resource management of Virginia (2000). Questionnaire was sent to the respondentsthrough e-mail and in printed form.

Data was analyzed using Statistical Package for the Social Sciences (SPSS). Thedescriptive statistics utilized was based on chi-square tests and graphical illustrationswere used to provide information on key demographic variables in this study.

4.DATA ANALYSIS

In order to test the research hypothesis, the Pearsons product moment chi-square andgraphs were used between non-monetary rewards and motivation. In order to test theresearch hypothesis, first Chi-square test was performed to determine if bank gives anopportunity for training to improve job-related skills and knowledge it will be source ofmotivation to employees to put more efforts in their jobs.

The probability of chi-square test statistics for opportunity for training to improve job-

related skills and knowledge proved to be p = 0.120, that is greater than the alpha levelof significance that is 0.05. Data are summarized in the Table 1 below:

Table-1: Chi-Square tests between skill training and motivation

It means there was found an insignificant relationship between opportunities for trainingregarding job-related skills and employees motivation level. So the null hypothesis that

Value Df A symp. Sig. (2-sided)

Pearson Chi-Square 22.787a 16 .120

Likelihood Ratio 26.144 16 .052

Linear-by-Linear Association 1.407 1 .235

N of Valid Cases 384


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Farooq-E-Azam Cheema, Sobia Shujaat, Rafia Alam

27 Journal of Management and Social Sciences

non-monetary rewards do not have any significant positive impact on employeesmotivation is accepted.Regarding other four non-monetary incentives namely employees participation incareer development activities, positive working environment for employees, flexibleoffice hours and opportunities to promotion were found having positive impact onemployees motivation. The probability of Chi-square test statistics for all these four

factors is less than the alpha level of significance of 0.05 that shows their significantrelationship with motivation. Findings of the test are summarized in the Table 2 below:

Table-2: Chi-Square tests between career advancement opportunities and

motivation

Value Df Asymp. Sig. (2-sided)

Pearson Chi-

Square45.372a 16 .000


Linear-by-Linear

sociation .200 1 .655


Table 2 above shows that there is a statistically significant association betweenemployees participation in career development activities and their motivational level.The probability of Chi-square test statistic (Chi-square = 45.372) is p = 0.000, that isless than the alpha level of significance of 0.05. Thus, the null hypothesis thatopportunities for career advancement do not have any significant positive impact onemployees motivationis rejected.Pearson chi-square was also calculated between recognition for performance andemployees motivation to perform better. The values were summarized in the Table 3:

Table-3: Chi-Square tests between fair recognition and motivation

Value DfA symp. Sig.

(2-sided)

Pearson Chi-

Square14.887a 16 .533


Linear-by-Linear

Association3.427 1 .064


The probability of chi-square test statistics (Chi-square = 14.887) was found p = 0.533,that is greater than the alpha level of significance of 0.05. it shows there was found aninsignificant relationship between equal recognition to every team member andemployees motivation level. Thus, the null hypothesis that due performance recognition does not have any significant positive impact on employees motivationis accepted.Chi-square test was also performed to determine effect of banks internalcommunication channel over the employees motivation to perform better on their job.Values of the findings are summarized in the Table 4.


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Vol. 9, No. 2, (Fall 2013) 28

Table-4: Chi-Square tests between effective internal communication and

motivation

Value DfA symp. Sig.

(2-sided)



Linear-by-Linear

Association.946 1 .331


As per the Table 4, the probability of Chi-square test statistic (Chi-square = 31.108) is p= 0.013, that is less than the alpha level of significance of 0.05. The data indicate asignificant relationship between internal communication channel and employeesmotivation level. Thus the null hypothesis that effective internal communicationchannels do not have any significant positive impact on employees motivation isrejected.

For the Chi-square test conducted to determine effect of job security available to thebank employees on employees motivation findings were as follow:

Table-5: Chi-Square tests between Job security and motivation

Value Dfsymp. Sig.

(2-sided)



Linear-by-Linear

Association51.672 1 .000


The probability of Chi-square test statistic (Chi-square = 96.245) is p = 0.000, that isless than the alpha level of significance of 0.05. This shows that there is a statisticallysignificant association between job security and employees motivational level. It meansif employees feel their job secure then this job security will greatly impact onemployees motivational level. Thus, the null hypothesis that effective recognition doesnot have any significant positive impact on employees motivationis rejected.

5.

CONCLUSION

Most of the results of the study are in accordance with the hypotheses. Although twofactors; providing opportunity of training and fair recognition of the efforts on the jobcould not find a significant relationship with the employees job related motivation. Thisshows that employees are less likely to be motivated through banks tra ining andrecognition related interventions and endeavours. Chi-square test found a significantrelationship between opportunities for career advancement and employees motivationlevel supporting the research of Jenkins and Adrian Giles, (2012) that employees thoughvalue verbal praise and recognition from their managers, they are more motivated bypromotion and career development opportunities.

There is also found a significant relationship between effective internal

communication channels and employees job related motivation level. These findingsare in line with the findings of the research carried out by M. Ashfaq et al (2012) on the


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Farooq-E-Azam Cheema, Sobia Shujaat, Rafia Alam

29 Journal of Management and Social Sciences

role of effective communication in retention and motivation of employees. The resultsof that work showed that workers consider effective communication very important totheir motivation and vital source of their association with the organization. According tothe results of our study communication gives the feeling of belonging and sense ofpartnership with employees working in the organization. When employees feel that theyhave been heard and that they can communicate with their supervisors whenever they

need they feel themselves more a part of the group and, in the result, are more motivatedto work.

On the other hand, verbal praise of appreciation from management in front ofcolleagues, feeling of being valued in the bank, a positive working environment,encouragement by upper management on new initiatives, effective internalcommunication, gaining respect and good relationship with other co-workers, properand correct appraisal of employee by management are motivating factors for employeesof different banks of Karachi. Out of five factors, only one factor i.e. opportunity fortraining to improve job-related skills and knowledge is insignificant. Hence, both nullhypothesis of this study are being rejected and Alternative hypothesis i.e. Non-monetaryrewards and effective recognition has a significant positive impact on employeesmotivation in banks in Karachi, Pakistan is supported by this study. Finally, it has beenconcluded that non-monetary rewards and recognition have a positive and significantimpact on employees motivation among bank employees in Karachi.

Findings of this show that opportunity for training has insignificant relationshipwith employees motivation to put more efforts in their job. Whereas, studies of Farhanet al (2011) we referred to in the literature review found training and developmenthaving positive and significant association with employees motivation of banks inPakistan. The reason behind insignificant associationbetween training and employeesmotivation may be that offering job and skills related training to the employees maycause a feeling of insecurity among them. They may feel bank takes them incompetentthat results in training to them.Likewise, findings of this study also an insignificant relationship between recognition ofcontribution of the employees by the supervisors and employeesmotivation level. Thisinsignificant association is because it creates negative feeling among bank employees

that every individual in a team whether he/she contributes significantly or not. Thisfeeling is likely to de-motivate the talented and hardworking employees who could stopworking hard if all people are recognized equally regardless of level of theircontribution.

In this area of study future research suggestion to examine the combined effect offinancial and non-financial job rewards on employees motivation with the moderatingdemographic differences like age and gender. Using age and gender difference asmoderating variables, the effect of non-monetary rewards on the employees motivationcan be further refined keeping in view their preferences for particular rewards.

6.REFERENCES

1. Ajila, C.O. (1997). Job Motivation and Attitude to Work as Correlates ofProductivity among Workers in Manufacturing Companies in Lagos State. Nigeria.

Unpublished Ph.D Thesis submitted to the Department of Psychology O.A.U IleIfeOsun State, Nigeria.

2. American Psychological Association. (2012). Feeling Valued at Work Linked toWell-Being and Performance, APA Survey Report (2012), United States, APA.

3. Armstong, Michael. (1977), Human Resource Management Practice, 7th edition.Great Britan: Kogan Page Limited, pp.922.

4. Armstrong, M., & Murlis, H. (1991). Reward management. London: Kogan PageLtd.

5. Baron, R.A. (1983). Behavior in organizations. New York: Allyn & Bacon, Inc.6. Calista Lai, (2009). Motivating employees through incentives programs.

Bachelors thesis, school of business administration, JYVSKYL University ofApplied Science.


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7. Dzuaranin, S. (2012). The effect of tangible and intangible noncash rewards on

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Eunice Parisi-Carew, Lily Guthrie. (2009), Creating a Motivating WorkEnvironment, Ken Blanchard Companies.

10. Impact of Workforce Motivation on Operational Loses. (2011). StudyMode.com.Retrieved 11, 2011, from http://www.studymode.com/essays/Impact-Of-Workforce-Motivation-On-Operational-834691.html.

11. Jenkins, Adrian Giles. (2012), The Value of Verbal Praise and Recognitionamongst New Zealand Library Staff, VICTORIA, University of Willington.

12. Kaleem Ullah Khan, Syed Umar Farooq, Zilakat Khan. (2010). A ComparativeAnalysis of the Factors Determining Motivational Level of Employees Working inCommercial Banks in Kohat, Khyber Pukhtunkhwa. International Journal ofBusiness and Management, Vol.5 (12).

13. Lai, C. (2009), Motivating Employees through Incentive programs, Dissertation

Thesis of Bachelor Degree, Jyvaskyla University of Applied Sciences, retrievedfrom:https://publications.theseus.fi/bitstream/handle/10024/17561/jamk_1237444488_5.pdf?sequence=2, (Accessed on: 11/09/2011)

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Matthew, J., Grawhich, & Barber, L. K., (2009). Are you focusing both Employeesand Organizational Outcomes Organizational Health Initiative at Saint LouisUniversity (ohi.slu@edu), 1-5.

18. M. Ashfaq, Kashif, Nadeem, and Asad. (2012), Role of Effective Communicationin Retention and Motivation of Employees, ICABSEI, pp. 64-67.

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disciplinary journal of contemporary research in business, Vol. 2(12), pp. 793.20. Roberts. (2005). relationship between rewards, recognition and motivation at an

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24. Stovall. (2003). increasing employee participation in fire safety education programsusing non-monetary rewards.

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http://www.studymode.com/essays/Impact-Of-Workforce-Motivation-On-Operational-834691.htmlhttp://www.studymode.com/essays/Impact-Of-Workforce-Motivation-On-Operational-834691.htmlhttp://www.studymode.com/essays/Impact-Of-Workforce-Motivation-On-Operational-834691.htmlhttp://www.studymode.com/essays/Impact-Of-Workforce-Motivation-On-Operational-834691.htmlhttp://www.studymode.com/essays/Impact-Of-Workforce-Motivation-On-Operational-834691.html

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